Nov. 25 (Bloomberg) -- Taiwan’s dollar fell, capping its biggest weekly drop in two months, as a deteriorating outlook for the economy prompted global investors to pull funds from the island’s assets. Government bonds also declined today.
The statistics bureau said yesterday it expects gross domestic product to climb 4.51 percent this year and 4.19 percent in 2012, less than previous predictions for gains of 4.56 percent and 4.38 percent. Industrial production rose 1.4 percent in October from a year earlier, the smallest gain since August 2009, a government report showed Nov. 23. Overseas investors sold $300 million more Taiwanese shares than they bought today, taking this week’s net sales above $1.2 billion.
“The macroeconomic situation continues to worry investors,” said Eric Hsing, a fixed-income trader at First Securities Inc. in Taipei. “Taiwan yields will hover around current relatively low levels before the presidential election” on Jan. 14, he said.
The Taiwan dollar fell 0.1 percent today to NT$30.460 against its U.S. counterpart, contributing to a 0.7 percent decline for the week, according to Taipei Forex Inc. It earlier touched a six-week low of NT$30.505.
The yield on Taiwan’s 1.25 percent bonds due September 2021, the most-traded government securities, rose 1.5 basis points today to 1.325 percent, prices from Gretai Securities Market show. The rate was little changed on the week. A basis point is 0.01 percentage point.
The overnight money-market rate, which measures interbank funding availability, was steady this week and today at 0.398 percent, according to a weighted average compiled by the Taiwan Interbank Money Center.
--Editors: Simon Harvey, James Regan
To contact the reporter on this story: Andrea Wong in Taipei at firstname.lastname@example.org
To contact the editor responsible for this story: Sandy Hendry at email@example.com